Tax Relief / Jobs Creation Act of 2010
JOEJOEJOE
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Social Security Tax Savings
It gets pretty complicated to understand, but there is a reduction in payroll taxes that benefits everyone who is employed. FICA (social security tax) is being reduced from 6.2% to 4.2%, so, for everyone earning below $106,800 in wages, they will take home an extra $200 for every $10,000 they earn.
Someone making $50,000 per year will save $1,000.
The employer portion of FICA is also reduced, so business owners will save the same amount on their payroll tax expense. Hopefully this serves as a good incentive to hire more employees.
Estate Tax
Another move that may be popular for the average person is the reinstatement of the estate tax. Before Bush, a decedents estate would pay a maximum estate tax of 55% of their taxable estate. For 2010, there was no estate tax, so if a wealthy person died, their heirs would receive 100% of the estate, as opposed to 45%. This was a huge point of contention, but the new estate tax rate is 35% of the taxabale portion of the estate (the first $5,000,000 of the estate is not taxable).
Not too be morbid, but 2010 was a good year to die if you had a huge estate. George Steinbrenner's estate saved about $500 Million in estate tax because he died in 2010.
It gets pretty complicated to understand, but there is a reduction in payroll taxes that benefits everyone who is employed. FICA (social security tax) is being reduced from 6.2% to 4.2%, so, for everyone earning below $106,800 in wages, they will take home an extra $200 for every $10,000 they earn.
Someone making $50,000 per year will save $1,000.
The employer portion of FICA is also reduced, so business owners will save the same amount on their payroll tax expense. Hopefully this serves as a good incentive to hire more employees.
Estate Tax
Another move that may be popular for the average person is the reinstatement of the estate tax. Before Bush, a decedents estate would pay a maximum estate tax of 55% of their taxable estate. For 2010, there was no estate tax, so if a wealthy person died, their heirs would receive 100% of the estate, as opposed to 45%. This was a huge point of contention, but the new estate tax rate is 35% of the taxabale portion of the estate (the first $5,000,000 of the estate is not taxable).
Not too be morbid, but 2010 was a good year to die if you had a huge estate. George Steinbrenner's estate saved about $500 Million in estate tax because he died in 2010.
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Comments
The years not over yet :shock:
She is exempt from estate tax on your assets, so it would make no sense FINANCIALLY for her to off you!
Oh phew...
:stabbed by the 5 year old:
Thank goodness for that. My boss needs all the help he can get to keep us employed!!!
now is this FOR SURE or is it part of what is still being voted on?
Where I'm not ugly and you're lookin' at me
Still to be approved, but for bills of this size, they usually make changes beforehand so they won't have to keep voting over and over again.
i don't see this happening at all. all we hear about is how broke SS is going to be in a few years.